If you own cryptocoin worth more than 200usd, then hardware wallet is needed.

It is simple, if an exchange gets hacked, they can simply file for bankruptcy and they are done, but it is people like us who loose all their had earned savings.

It is our responsibility to protect our coin, the exchanges will keep upgrading the tech and security, but due to high ownership of coins by exchanges it will continue to be a hot target to be hacked. Exchanges are not to be blamed. They let us withdraw our coins, so we must withdraw. Secondly, if you put thousands of dollars in investing, better study about managing coins using hardware wallet.